u/k_ristovski ·
Reddit — r/ValueInvesting
· July 19, 2026 at 18:15
· ⬆ 16 pts
· 💬 52 comments
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AI Summary
Summary
The author argues Wix is deeply undervalued: its Base44 acquisition alone is worth the current market cap, management has bought back 1/3 of shares, and the core business could generate ~$350M operating profit next year.
Fair value estimated at $72–$120/share vs. the current $51/share, implying 40–135% upside.
Quality assessment: Well-researched DD with specific financial estimates and management actions, but relies on forward-looking assumptions and ignores competitive AI threats highlighted by the community.
Score16
Comments52
Upvote %73%
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Disclosure: I am bullish on Wix and aim to build a position over the next few months *(should the price remain at these levels and the fundamentals don’t change)*.
I think Wix deserves to be a case study for many reasons, but most notably, its irrational price movement.
\- Went 3x during the pandemic
\- Down 85% after the pandemic
\- Up 250% by January 2025
\- Down 78% since.
The fundamentals didn't justify this volatility. I just shared a deep dive (\~5 minutes reading time): [https://thefinancecorner.substack.com/p/wix-85-down-more-valuable-than-ever](https://thefinancecorner.substack.com/p/wix-85-down-more-valuable-than-ever)
TLDR:
\- Base44 (which was acquired in 2025) alone is worth the same as the company's market cap. Its ARR went up from $10m in June 2025 to $160m today.
\- The management believes the fair value is significantly higher and bought back 1/3 of the company
\- Wix (excl. Base44) would be earning \~$350m operating profit next year (my estimate, calculation included)
**- Fair value $72 to $120/share (yes, quite a wide range) vs. $51/share today.**
Hope you enjoy it, and as always, looking forward to your thoughts/feedback.
Base44’s ARR surged from $10M to $160M in one year; management repurchased 1/3 of the company, signaling strong conviction. The market may be mispricing Wix as a legacy web builder while ignoring the hidden value of Base44 and operating profit potential. If the author’s estimates hold and AI disruption is overblown, Wix offers a deep-value turnaround with a margin of safety. AI-driven low-code/no-code competition (vibe coding), poor user experience driving churn, unprofitable status, and macro headwinds hurting SMB spending.